CAG report picks holes in Punjab’s DBT for social security schemes

Chandigarh: The Comptroller and Auditor General of India’s report on the direct benefit transfer (cash transfer) for social security schemes has observed that the procedure implemented was “not in consonance with the spirit of the DBT framework”.
The report for April 2017 to July 2020 period tabled in the legislative assembly on Wednesday stated: “The procedure can be termed as benefit transfer, but not as ‘direct’ benefit transfer.”

It added: “Despite lapse of more than three years from the decision (March 2017) of the state government to bring all the social security schemes under DBT, the department concerned could reduce only one intermediary level (payment through gram panchayat’s bank account) in disbursing the financial assistance under the social security schemes.”
The CAG report also pointed out that even though Aadhaar numbers of 92% of the digitised beneficiaries had been captured in six test-checked districts, system of transfer of financial assistance directly to the Aadhaar linked bank accounts of the beneficiaries by generation of payment files instructions in Public Financial Management System (PFMS) or through state treasury account was not ensured.
The DBT scheme is being implemented by the department of social security and women and child development (DSSWCD), in coordination with the state direct benefit transfer cell under the control of the department of governance reforms and public grievances, Punjab. “In six test-checked districts, active beneficiaries were denied financial assistance of Rs 277.96 crore in three selected schemes during the period from April 2017 to July 2020. Besides, in 8,371 cases, the financial assistance was sanctioned with a delay up to 1,432 days beyond the prescribed time period of 30 days in four test-checked districts,” said the report.
The DSSWCD weeded out (January 2018- July 2020) 8,256 records of duplicate beneficiaries under three selected social security schemes. However, no action had been taken for recovery of probable excess financial assistance of Rs 9.89 crore paid (April 2017- July 2020) to these duplicate beneficiaries, said the report. After porting the beneficiaries’ data in PBMS, no review to check the completeness, authenticity and correctness of the legacy data was conducted.
The audit noticed 941 duplicate or ineligible records of beneficiaries under three selected schemes in six test-checked districts. The probable excess financial assistance paid (April 2017-July 2020) to these beneficiaries worked out to Rs 1.82 crore. Besides, financial assistance of Rs 0.72 crore was also paid to 651 children beyond the prescribed age of 21 years, in contravention of the guidelines.
Besides, the delay in sending payment files to banks ranged up to 245 days from the sixth day of the succeeding month in which the financial assistance was due in six test-checked districts. Modification in master database i.e. change in bank account numbers of beneficiaries was being done without any authority or request of the applicant on record. Dissemination of information through SMS about payment of financial assistance to beneficiaries and regulation of failed transactions received from the respective banks was also lacking.
In 213 cases, the financial assistance was provided to the same beneficiaries under two different social security schemes. The CAG also observed that no mechanism existed in DSSWCD for identification of deceased beneficiaries through the Registrar General of India to ensure discontinuance of financial assistance to the deceased.